Supervising employer’s obligation to take out insurance
- Public service
Employees have a legal right to an earnings-related pension. The Finnish Centre for Pensions makes sure that private sector employers take out pension insurance for their employees.
The supervision of earnings-related pension insurance strives to be preventive and as up-to-date as possible. The Finnish Centre for Pensions supervises the insurance obligation in cooperation with various other authorities.
Do the following
As an employer, you have to take out statutory earnings-related pension insurance for your employees with
- an earnings-related pension insurance company,
- an industry-wide pension fund or a company pension fund, or
- a pension fund that you establish yourself.
As the employer, you are also to report your employees’ earnings to the Incomes Register. As a rule, you must do this by the fifth calendar day after the earnings have been paid.
Private sector employees are covered mainly by the Employees Pensions Act (TyEL), except for sailors, who are covered by the Seafarer's Pension Act (MEL). Earnings-related pension insurance companies, industry-wide pension funds and corporate pension funds handle earnings-related pensions that are covered by TyEL. The Seafarer’s Pension Fund handles pensions that are governed by MEL.
Keva handles the pensions of employees of municipalities, the State, the Evangelical Lutheran Church and Kela. These fields are governed by the Public Sector Pensions Act (JuEL).
What if no insurance has been taken out?
If you, as a private sector employer, neglect your obligation to take out insurance, the Finnish Centre for Pensions will urge you to take out appropriate insurance.
If you fail to comply with the request, the Finnish Centre for Pensions will take out insurance with one of the pension insurance companies on your behalf and at your expense. If you are an occasional employer, the Finnish Centre for Pensions will give the insurance company your insurance data. For the period that you have neglected to take out insurance, the pension contribution can be increased by as much as 100 per cent.
If the neglect began in 2020 or later, the State Treasury determines the amount of the increased contribution on application by the pension provider. The pension provider collects the contribution.
If the neglect began before 2020, the pension provider determines and collects the increased contribution for neglect.
To whom and on what terms
The service is free of charge.